How Can Digitalisation Help the Oil Industry?
Jan 07 2021 Read 1565 Times
Digitalisation is gaining fierce momentum within the oil and gas sector, with a new report from DHL predicting the trend could unlock up to US$2.6 trillion in value by 2025. While growth is expected to be relatively slow in 2021 analysts at the leading logistics firm say digitalisation will pick up drastically over the next few years and support enormous growth within the energy industry.
Increasing margins, improving safety standards, reducing emissions and slashing water consumption are just some of the benefits associated with digitalisation, one of the key trends set to shape the oil and gas industry over the next few years. The report identifies autonomous robots and drones as key drivers of digitalisation, with the technologies offering the potential to cut costs by a huge 20% in deep-water drilling areas. Savings of up to 25% could be unlocked within the inspection and asset maintenance arms.
Digitalisation to help industry stay afloat
The oil and gas industry was hit hard by the COVID-19 pandemic, with demand plummeting in the face of global lockdowns and travel restrictions. DHL analysts admit that while demand will not return to pre-pandemic levels before the end of 2021, digitalisation could help the industry emerge stronger and more efficient than ever.
“The energy sector is grappling with multiple challenges due to the pandemic but it is not all doom and gloom, however,” says Amadou Diallo, CEO of DHL Global Forwarding Middle East and Africa. “Whilst it is more critical than ever to ensure the smooth completion of projects, it is equally pertinent that energy companies leverage technology to offer smarter, simplified and greener solutions.”
Transitioning to a green economy
Alongside digitalisation, the DHL report identified a fast-tracked transition towards a green economy as one of the biggest trends set to shape the oil and gas industry over the next five years.
“To stay relevant in a dynamic market, energy companies have to adapt and embrace new business models, which will allow them not only to participate but also to lead the global transition towards green energy,” adds Diallo. “At DHL, we continue to work closely with our customers to optimise their complex supply chains and manage logistics costs better, so energy companies can focus on their core activities.”
To find out more about how new technologies are reimagining the energy industry don’t miss ‘Digitalisation Transforms Refinery Emissions Monitoring and Combustion Control Gas Analysis’ with insight from Stephen B Harrison on behalf of ABB Measurement & Analytics.
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